California Is The Toughest State For First-Time Homebuyers

Low inventory and expensive houses puts the squeeze on Millennials who are looking to buy

February 28, 2017

California’s rising home prices have effectively priced out most young buyers.

Through a new report from Bankrate.com, CNN Money says that California is the toughest state for first-time buyers based on affordability, inventory levels, lending environment, home ownership among 35-year-olds, and the job market. While current homeowners have the advantage of built-up equity, first-timers find it difficult to save for a down payment.

Buyers in the Golden State face low affordability, tight inventory and high unemployment among workers ages 25-34. "Millennials have been squeezed financially in a number of different ways," said Claes Bell, an analyst at Bankrate.

Other states that are bad for first-time buyers include Hawaii, New York, Louisiana, and Mississippi. On the other end, Iowa, Utah, Minnesota, Kansas, and Missouri are the easiest states for young adults to buy a house.

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